PIT stands for prohibition of insider trading
and PFUTP stands for prohibition of fraudulent and unfair trade practices.
MFL, in the minutes of its board meeting held on March 13,2013, indicated that contrary to the expectations, the company could report a loss for the quarter ended March 2013. Mukherjea, at a meeting held on March 18 with MFL’s senior officials, obtained this price-sensitive information and later published the same in a research report.
When MFL announced its March quarter numbers on May 15, 2013, its scrip had declined 6 per cent, as per the Sebi order.
Sebi issued a show-cause notice to Mukherjea in May 2019. In July 2019, he submitted an application to settle the matter under the Settlement of Administrative and Civil Proceedings Regulations—popularly known as consent route.
Under this route, an applicant can settle a pending matter with the regulator without admitting or denying the charges by paying a fee or undergoing a market ban or both.
Mukherjea quit Ambit Capital
in April 2018 after an eight-year stint. In August 2018, he set up Marcellus Investment Managers, a provider of portfolio management services
(PMS). Since inception, Marcellus’s PMS schemes have managed generate stellar returns, outperforming the benchmark indices.
"Given that it has been over seven years since the events at heart of the matter transpired, I felt that it was appropriate to apply for settlement and move forward. I respect Sebi's decision and am grateful to them for disposing the matter," Mukherjea said.